List of leading risk management services

simpleshue · June 10th, 2010, 9:16 pm

Hi, I am wondering if anyone can provide a list of leading risk management services on the street. Considering this for a startup fund, or should I just do it myself? How hard is it to build a risk system for a small fund?Thanks

acastaldo · June 10th, 2010, 11:36 pm

Your prime broker may well provide some basic risk management reports.Otherwise the leading software vendors are Barra, Northfield Information Services, Axioma, etc. etc.Writing your own sounds like a bad idea to me.

KackToodles · June 11th, 2010, 1:34 am

somebody should risk manage the risk managers. Weren't the so-called risk managers ultimately responsible for the 2008 crisis because they rated C level CDOs and CDSes as being investment grade?

frattyquant · June 11th, 2010, 2:01 am

The actual "risk management" algorithms are pretty straightforward, but bookeeping positions, date arithmetic and that kind of stuff can become very tedious very quickly. If you are a startup fund, this could end up chewing up a bunch of your time. If your fund has relatively liquid instruments, you could just use the Bloomberg VaR function.Otherwise, you really want to go with a vendor system.

simpleshue · June 11th, 2010, 2:24 am

Thanks, acastaldo, that is helpful

simpleshue · June 11th, 2010, 2:26 am

You are right, frattyquant. That's why I am looking for some kinda vendor system you mentioned. Any suggestions?

qhedge · June 11th, 2010, 6:28 am

Algorithmics Risk Service

IceQueen · June 11th, 2010, 8:06 am

Please never rely solely upon a 3rd pty risk consultant. By all means, use 3rd pty experts for advice and diagnostics but you must have your own in-house competent risk manager.Let me put it like this: If you are planning to generate 5-10% on USD100m, is the cost of a good risk manager really that onerous?

Hansi · June 11th, 2010, 8:39 am

There is also Risk Metrics.But I've heard good things about the risk systems from Barra and Algorithmics but never used them myself.

frenchX · June 11th, 2010, 8:54 am

QuoteOriginally posted by: HansiThere is also Risk Metrics.But I've heard good things about the risk systems from Barra and Algorithmics but never used them myself.Risk metrics is the one from JPMorgan Chase?EDIT: It's now with MSCI it seems.

Chargerbullit · June 11th, 2010, 9:04 am

Adaptive Analytics (by Sungard) is also pretty good for risk management purposes when it comes to plain vanilla and structured interest rate and fx derivatives. I've been very pleased with it.

simpleshue · June 11th, 2010, 11:52 am

ThanksQuoteOriginally posted by: ChargerbullitAdaptive Analytics (by Sungard) is also pretty good for risk management purposes when it comes to plain vanilla and structured interest rate and fx derivatives. I've been very pleased with it.